Local childcare owner accused of wire fraud in state probe

The owner of a Kasson childcare center has been charged in federal court, where she is accused of fraudulently obtaining more than $425,000 in funding from a state program.
Jillaine Ann Mertens, of Hamel, is scheduled to be arraigned June 4 in Minneapolis. She operated Creative Stars I and Creative Stars II, which provided childcare for families in Rochester and Kasson, respectively.
According to the criminal complaint filed against her, from November 2024 through about May 2025, Mertens “knowingly devised and participated in a scheme … to defraud” a Minnesota-funded program known as the Great Start Compensation Support Payment Program, administered under the Minnesota Department of Children, Youth and Families.
Mertens inflated the number of hours worked by teachers and staff, as well as making false applications to the program for 23 employees – teachers and staff – that were not even working for her, the complaint says.
During that time, she allegedly submitted applications for funds on behalf of at least 11 employees for more hours than they actually worked.
Additionally, she claimed she herself was providing in-classroom services at two different childcare facilities at the same time.
The court document alleges she “diverted the proceeds of the fraud for (her) personal use and benefit.”
As a result, she faces one count of wire fraud; the federal prosecutors will pursue forfeiture of any property derived from funds that can be traced back to the criminal activity.
The Kasson and Rochester sites operated under Creative Stars Academy, LLC; a Facebook page linked to the Kasson facility was active as recently as May 6.
The phone number provided on the page led to a message that said the call could not be completed.
The Creative Stars Academy website appears to have been shuttered.
The intent of the GSCSPP was to support the childcare industry and childcare educators with supplemental pay, based on the number of full-time equivalent staff who regularly care for children in the program.
The reimbursement applications were required on a monthly basis, and were completed online.